Earnings will again rule the market this week-Mortgage Rates for Monday 1/26/09

Just as last week, this weeks market tone will be set in large part by earnings reports. There was improved sentiment in early pre trading as the Pharmaceutical Sector rebounded with news that Phizer was snapping up Wyeth creating the largest Acquisition in history. However, all it took was Caterpillar coming out reporting that their loss expected was well more than predicted. Their further statement of some 20K job cuts once again reinforced that it will get worse before better and that the current Administration is under watchful eyes with the progress of the proposed "Stimulus Package".

The 10 year TNOTE yield continued to climb throughout the week and closed Friday at 2.62%. Just for comparison purposes, Yield was at roughly 2.18% last month and last week it was at 2.39%. Rates have followed that trend as well and are back above 5% and closer to 5 1/8 or more. If the market can keep it's focus away from Financials this week, perhaps TNOTES will see more activity and we'll likely see some slight improvement. It's too early to tell, so keep your eyes open.

THIS IS MY OPINION ONLY NOT THAT OF EAGLE NATIONWIDE MORTGAGE CO. ALWAYS CHECK WITH YOUR MORTGAGE PROFESSIONAL REGARDING YOUR OWN TRANSACTION